Related to the Economics in Practice on p. 325: Surveys by the bank of England suggest that consumers tend to expect future inflation to be
A) what they perceive past inflation to have been.
B) equal to the actual estimates of past inflation made by the government.
C) directly related to the interest rate.
D) relatively unpredictable.

Question

Quizplus · Accepted Answer

The surveys suggest that consumers' expectations of future inflation tend to be shaped by their perception of past inflation, indicating that they choose option A.

Related to the Economics in Practice on P